Valuation of the Closely-Held Business

If you want to determine a value for a publicly traded company such as GM, Ford, or McDonald’s, it’s easy. Quite simply, you multiply the number of outstanding shares by the current price to come up with a company’s market capitalization. With the Closely-Held Business, having no ready tradable market, finding value is a bit more complicated. In this lecture, you can find out how to obtain a value that is not only fair, but also presentable to the IRS for estate and gift tax reasons.

Learning Objectives:

I.   Understand the initial planning process when starting a valuation

II.  Grasp the tax and estate planning ramifications of valuating a closely-held business